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What: Shares of music publisher Warner Music Group
So what: German media outlet Handelsblatt says that European music giant Bertelsmann and American buyout gurus Kohlberg Kravis Roberts & Co.
Now what: The German newspaper says that KKR and Bertelsmann would dump some of the company's assets after closing the deal and then focus on running a profitable music publishing business. Collecting royalties on the intellectual property of musical works is a high-margin business, while selling recorded music is a less attractive business even when using digital channels with low overhead such as the Amazon.com MP3 store or Apple iTunes. It's a brave new world for artists and composers, and consolidation of the big music studios is a natural coping mechanism.
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